According to a filing with the U.S. Securities and Exchange Commission (SEC), Ullman’s base salary for 2014 will be $1.5 million and his target incentive award for the year is 200% of his base salary. He also will receive $5.5 million in stock, half in performance-contingent stock and the other half in performance-based restricted stock units.
In 2013 Ullman’s base salary was more than $810,000, and he earned another $1.6 million in other compensation, including some $913,000 in the personal use of corporate aircraft, according to a report at MarketWatch.
To justify the new pay scale, Ullman has lifted J.C. Penney’s sales microscopically, borrowed enough cash to keep the company afloat for this year and reached a deal with Martha Stewart Omnimedia Inc. (NYSE: MSO). The company says its same-store sales will improve this year by some percentage in the mid-single-digits. Given that sales were down in the low double-digits last year, this is hardly a reason to nearly double the CEO’s salary and offer performance-based incentives and stock options when the performance metrics are so easy to beat.
Ullman should have held out for a deal like the one Time Warner Cable Inc. (NYSE: TWC) CEO Robert Marcus got. Marcus stands to get a payout of $80 million if the merger with Comcast Corp. (NASDAQ: CMCSA) is completed. Marcus has been CEO since January 1. To be fair, about half that is due to immediate vesting of restricted stock and other options he received before he became CEO.
J.C. Penney’s shareholders who appear willing to cheer anything bid up the stock in the premarket Monday morning. Shares were trading at $8.65, in a 52-week range of $4.90 to $19.63.
100 Million Americans Are Missing This Crucial Retirement Tool
The thought of burdening your family with a financial disaster is most Americans’ nightmare. However, recent studies show that over 100 million Americans still don’t have proper life insurance in the event they pass away.
Life insurance can bring peace of mind – ensuring your loved ones are safeguarded against unforeseen expenses and debts. With premiums often lower than expected and a variety of plans tailored to different life stages and health conditions, securing a policy is more accessible than ever.
A quick, no-obligation quote can provide valuable insight into what’s available and what might best suit your family’s needs. Life insurance is a simple step you can take today to help secure peace of mind for your loved ones tomorrow.
Click here to learn how to get a quote in just a few minutes.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.